Fed's Bullard: Pretty Close to a Neutral Rate

Fed's Bullard: Pretty Close to a Neutral Rate

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses the impact of financial repression on savers and banks, questioning whether raising interest rates could stimulate the economy. It highlights the Federal Reserve's current stance on monetary policy, focusing on short-term goals and a neutral rate. The conversation shifts to the potential use of negative interest rates, with mixed results observed globally. The speaker expresses skepticism about adopting negative rates in the US, citing sufficient economic tools to handle a recession without them.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one reason banks might be hesitant to make loans currently?

Increased competition

Low profit margins

Strict regulations

High interest rates

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the Federal Reserve's current focus regarding interest rates?

Immediate changes

Forecast horizon of the next two years

Long-term predictions

Past economic performance

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the theme of the conference discussed in the transcript?

Banking regulations

Historical monetary policies

Future of the Fed's toolkit

Global economic trends

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential downside of implementing negative interest rates in the US?

Boosting economic growth

Disrupting the US banking system

Increasing inflation

Reducing unemployment

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which country has experienced mixed results with negative interest rates?

Germany

Japan

Canada

Australia